KUALA LUMPUR (June 3): The Employees Provident Fund (EPF) on Tuesday reported RM18.31 billion in investment income for the first quarter ended March 31, 2025 (1Q2025), a 13% drop from RM20.99 billion a year earlier, due to global market volatility.

Of the total, RM1.02 billion came from foreign exchange gains, which won’t be paid out as dividends, per EPF policy.

Chief executive officer Ahmad Zulqarnain Onn, in a statement, said global trade tensions and policy uncertainties affected returns, but EPF’s diversified global investments helped cushion the impact.

Equities remained the largest contributor, generating RM10.81 billion or 59% of total investment income, though it declined 23% from RM14.02 billion in 1Q2024.

Fixed income instruments contributed RM5.99 billion (33%), followed by real estate and infrastructure at RM1.08 billion, and money market instruments at RM0.43 billion.

Of the overall investment income, RM15.87 billion was allocated to conventional savings, and RM2.44 billion to shariah savings.

“In a more challenging and uncertain market environment, the EPF maintains a dynamic and well-diversified portfolio to help safeguard value and manage downside risks,” said Ahmad Zulqarnain.

As at March 2025, EPF’s total investment assets stood at RM1.26 trillion, with 62% from domestic investments and 38% invested overseas. International investments contributed RM8 billion, or 44% of total income for the quarter.

“We continue to actively explore investment opportunities across both domestic and international markets, to strengthen our portfolio and support long-term, sustainable returns for our members,” he said.

EPF said it will keep investing over 70% of its yearly funds in Malaysia, to help support the country’s economic growth.

Despite global challenges, Malaysia’s labour market stayed strong, boosting EPF membership and contributions.

In 1Q2025, EPF added 140,111 new members, raising total membership to 16.31 million, with 8.88 million active members. There were 19,600 new employer registrations, bringing the total number of active employers to 616,558.

Total contributions grew by 15.1% year-on-year to RM33.54 billion, from RM29.13 billion, and voluntary contributions surged 62% to RM7.02 billion, versus RM4.33 billion last year.

“The number of formal sector members contributing above the statutory rate was 10,990 in 1Q2025, compared to 6,771 in the same period last year,” it added.